MAI Investment Management provides targeted investment solutions to financial advisors. Investment solutions include the MAI Managed Volatility Strategy, developed in April 2009 and the MAI Energy Infrastructure & MLP Strategy, developed in December 2009. MAI Investment Management is a division of MAI Capital Management, LLC, an SEC registered investment advisor.
MAI developed the MAI Managed Volatility Strategy, a risk-managed liquid alternative, specifically to lower portfolio volatility. The Managed Volatility Strategy employs a strategic approach to options. The firm starts with a portfolio of stocks that consistently pay and are capable of growing dividends. To generate option premium cash flow, it then sells fully collateralized call and put options averaging under 10 weeks in duration. The portfolio also has a cash component and uses no leverage. As of December 31, 2020 our Managed Volatility Strategy had $230 million under management.
The MAI Energy Infrastructure & MLP Strategy was developed to seek attractive risk-adjusted total returns with relatively low correlation to equities and most other asset classes. MAI focuses on midstream companies with long-term fixed contracts to deliver energy. We have a nimble approach to management, through both format flexibility and liquidity, which we believe can be a significant advantage when investing in the U.S. Energy Renaissance. As of December 31, 2020 the MLP Strategy Composite had over $4 million under management.